Apple Fined €150 Million by French Antitrust Authorities Over App Tracking Transparency Feature
Fines and Penalties
French antitrust authorities handed Apple a €150 million (US$162 million) fine on Monday over its app tracking privacy feature, which is also under scrutiny in several other European countries. In addition to the fine, Apple will have to publish the decision on its website for seven days.
Reasons for the Fine
The watchdog said the way Apple implemented its App Tracking Transparency (ATT) software was “neither necessary nor proportionate to the company’s stated goal to protect user data” and also penalised third-party publishers. This decision is a result of an investigation that began in 2021, following complaints from advertising industry players who claimed ATT hindered their ability to target users.
Global Scrutiny
Authorities in Germany, Italy, Romania, and Poland have opened similar probes over ATT, which Apple promotes as a privacy safeguard. The feature, introduced by Apple in 2021, requires apps to obtain user consent through a pop-up window before tracking their activity across other apps and websites. If they decline, the app loses access to information on that user which enables ad targeting.
Criticism and Response
Critics have accused Apple of using the system to promote its own advertising services while restricting competitors. Apple, on the other hand, claims that ATT “gives users more control of their privacy through a required, clear, and easy-to-understand prompt about one thing: tracking.” The company also states that it has received strong support for this feature from consumers, privacy advocates, and data protection authorities around the world.
Impact on App Publishers and Ad Service Providers
The French Competition Authority found that Apple’s system required users to opt out of ad tracking twice rather than once, “undermining the neutrality of the feature” and causing economic harm to app publishers and ad service providers. The authority also added that Apple’s approach disproportionately affects smaller publishers, who rely heavily on third-party data collection to fund their businesses.
Conclusion
The fine and penalties imposed on Apple by French antitrust authorities are a significant development in the ongoing debate over the company’s app tracking transparency feature. While Apple claims that ATT is a privacy safeguard, critics argue that it restricts competition and gives the company an unfair advantage in the market.
Frequently Asked Questions
Q: What is the App Tracking Transparency (ATT) feature?
A: ATT is a feature introduced by Apple in 2021 that requires apps to obtain user consent through a pop-up window before tracking their activity across other apps and websites.
Q: Why did French antitrust authorities fine Apple?
A: French antitrust authorities fined Apple €150 million (US$162 million) for implementing ATT in a way that is "neither necessary nor proportionate to the company’s stated goal to protect user data" and for penalising third-party publishers.
Q: How does ATT affect app publishers and ad service providers?
A: Apple’s system requires users to opt out of ad tracking twice rather than once, causing economic harm to app publishers and ad service providers. Smaller publishers are disproportionately affected, as they rely heavily on third-party data collection to fund their businesses.